SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Basis of Presentation—The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and the Bank. All material intercompany balances and transactions have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP, but do not include all the information and footnotes required for complete consolidated financial statements. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated financial position at September 30, 2022 and December 31, 2021 and consolidated results of operations and consolidated shareholders’ equity for the three and nine months ended September 30, 2022 and 2021 and consolidated cash flows for the nine months ended September 30, 2022 and 2021.

Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown in this report are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2021 included within the Company’s Annual Report on Form 10-K.

Treasury Stock

Treasury Stock – During the three months ended September 30, 2022, the Company retired 826,995 treasury shares with a cost basis of $14.0 million. These shares were returned to the status of authorized but unissued shares.

Share Repurchase Program

Share Repurchase Program—The Company repurchased 510,161 shares under the Company’s share repurchase program during the nine months ended September 30, 2022 at an average price of $29.48. During the nine months ended September 30, 2021, the Company repurchased 214,219 shares at an average price of $27.19. Shares repurchased were retired and returned to the status of authorized but unissued shares.

Accounting Standards Not Yet Adopted

In lieu of the TDR accounting model, creditors will apply the general loan modification guidance in Subtopic 310-20 to all loan modifications, including modifications made for borrowers experiencing financial difficulty. Under the general loan modification guidance, a modification is treated as a new loan only if the following two conditions are met:

(i) the terms of the new loan are at least as favorable to the lender as the terms for comparable loans to other customers with similar collection risks; and (ii) modifications to the terms of the original loan are more than minor. If either condition is not met, the modification is accounted for as the continuation of the old loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate.

This update will become effective for the Company for fiscal years beginning after December 31, 2022, including interim periods within those fiscal years, and is not expected to have a significant impact on the Company’s financial statements.

Cash Flow Reporting

Supplemental disclosures of cash flow information were as follows for the periods indicated below:

	Nine Months Ended September 30,
(Dollars in thousands)	2022		2021
Supplemental disclosures of cash flow information:
Cash paid for taxes	$	6,750	$	4,559
Cash paid for interest		4,171		4,694
Supplemental disclosures of non-cash flow information:
Operating lease right-to-use asset increased (decreased) in exchange for lease liabilities		809		(617)
Change in liability for dividends accrued		167		(755)